Section 4-301 - Property insuranceThe following provisions apply to insurance provided or to be provided in relation to a consumer credit transaction: [1997, c. 315, §6 (NEW).]
1. A creditor may not contract for or receive a separate charge for insurance against loss of or damage to property unless:A. The insurance covers a substantial risk of loss of or damage to property related to the credit transaction; [1973, c. 762, §1 (NEW).]B. The amount, terms and conditions of the insurance are reasonable in relation to the character and value of the property insured or to be insured; [1973, c. 762, §1 (NEW).]C. The term of the insurance is reasonable in relation to the term of credit. [1973, c. 762, §1 (NEW).] [1975, c. 368, §1 (AMD).]
2. The term of the insurance is reasonable if it is customary and does not extend substantially beyond a scheduled maturity. [1973, c. 762, §1 (NEW).]
3. With respect to a transaction, except pursuant to open-end credit, a creditor may not contract for or receive a separate charge for insurance against loss of or damage to property, unless the amount financed exclusive of charges for the insurance is $1,400 or more and the cash price of the item or property is $1,400 or more. [1997, c. 727, Pt. B, §15 (AMD).]
4. With respect to a transaction pursuant to open-end credit, the administrator may adopt rules consistent with the principles set out in subsections 1 and 2 prescribing whether, and the conditions under which, a creditor may contract for or receive a separate charge for insurance against loss of or damage to property. [1975, c. 368, §2 (NEW).]
5.[1997, c. 727, Pt. B, §16 (RP).]
1973, c. 762, § 1 (NEW) . 1975, c. 368, §§1,2 (AMD) . 1985, c. 763, §A40 (AMD) . 1997, c. 315, § 6 (AMD) . 1997, c. 727, §§B15,16 (AMD) .